U.S. Senator Saxby Chambliss (R-Ga) said that unless government spending is cut significantly and revenues increased, the United States will end up “at the point of no return” much like some struggling countries in Europe.
Chambliss is a member of a bipartisan group Gang of Six, which in 2011 set out to find a plan to resolve the national debt problem.
“We’re heading the same direction as France and Greece,” Chambliss said. “The Gang of Six talked, and spending relative to GDP (gross domestic product) is 62 percent to 63 percent. Talk to any economist and they will say that at 90 percent spending relative to GDP, you are at the point of no return.”
Chambliss said the biggest problem facing the nation is entitlement spending. “We need to reform entitlements rather than just cutting them,” he said. According to the senator, in 2010 government spending added up to 25 percent while revenues were at 14.5 percent.
“We have a $1.5 trillion annual deficit,” said Chambliss. “That’s certainly unsustainable.”
The next big debate in Washington will be the debt ceiling with a deadline of March 1 and Chambliss said there has to be a way not to increase it.
The President already said he's not interested in any negotiations about the debt ceiling.
“If we don’t take any action, there could be a shutdown of the government,” Chambliss said.
Currently, the debt ceiling is set at $16.4 trillion.